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Optical Networking a Wild Ride for MEMS Suppliers According to EmTech Research, a Division of Small Times Media

Posted on: Tuesday, 3 May 2005, 15:00 CDT

Revenues for MEMS (MicroElectroMechanical Systems) devices sold into the optical networking market declined by 27.2% from 2003 to 2004, although the level of unit shipments remained essentially flat, reports EmTech Research, a division of Small Times Media (http://www.emtechresearch.com). Once considered the golden child of telecom, suppliers developing MEMS-based components for optical networking applications continue to be battered by poor market conditions.

"Even a new strategy, in which many MEMS suppliers are now offering intelligent modules such as Wavelength Selective Switches (WSS), rather than just components, may not be enough," says Marlene Bourne, Vice President of Research and Principal Analyst with EmTech Research. "2005 will be a pivotal year where survival will be the main business focus."

A report from EmTech Research also finds that:

-- Despite current market conditions, MEMS suppliers pursuing this segment received $63.5 million in funding over the past twelve months.

-- At a little more than $150 million in 2009, this year's forecast is just a tenth of the forecast back in the heyday of late 2000, and half of what was forecast last year.

-- Unit shipments are forecast to increase at a Compound Annual Growth Rate of 9.4% over the next five years.

The new report, MEMS Market Brief: Last Call for Optical Networking?, takes a look at the companies offering MEMS-based solutions for the optical networking market. Forecasts of unit shipments and revenues are provided through 2009.

To purchase this report or for more information, contact Nancy Crosby at 734-528-6252 or nancycrosby@smalltimes.com. The 9-page report is priced at $1295 U.S. For more information, visit www.emtechresearch.com/reports.html.

About EmTech Research

The most highly regarded provider of business intelligence about small tech, EmTech Research (a division of Small Times Media), provides timely and accurate market reports about emerging technologies, including nanotechnology, MEMS and microtechnology. EmTech Research also offers asset identification and analysis for economic development groups wishing to increase their level of micro and nanotechnology activity.

EmTech Research is a division of Small Times Media, the leading source of business information and analysis on micro and nanotechnology (www.smalltimesmedia.com).

Source: Business Wire

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